S&P 500 (SPY) Report – 03/15/24

Good morning, traders!

The S&P 500 ($SPY) is trading near yesterday’s close. Let’s get into it…

Stock markets have been experiencing a mix of stability and volatility recently. The Nasdaq 100 and S&P 500 futures remained steady despite a sharp drop in Treasury bonds after an unexpected increase in the Producer Price Index (PPI). The S&P 500 is poised to conclude the week with a slight gain as investors await the Federal Reserve’s policy meeting next week. European stocks, on the other hand, have been on a consistent rise, achieving their longest winning streak since 2018, fueled by expectations of a decrease in interest rates in the Eurozone.

However, there are increasing concerns about the sustainability of this bullish market momentum. Market analysts warn that stocks are particularly susceptible to any adverse changes in economic forecasts or expectations of monetary policy easing. The upcoming “triple witching” event, where multiple options contracts expire, could add to the market’s volatility. Additionally, there are worries that if there is no soft economic landing or interest rate cuts, it could lead to market instability.

The Japanese yen has weakened against the dollar due to anticipations of a rate hike, which has been largely factored into market prices. However, a slower-than-expected tightening pace could diminish the yen’s yield advantage over the dollar. Meanwhile, the Federal Reserve is anticipated to maintain interest rates at the upcoming meeting, focusing instead on updating economic forecasts, which could influence global currency dynamics.

In company news, Adobe’s stock fell after providing a less-than-optimistic business outlook, despite surpassing quarterly estimates. McDonald’s experienced a technology outage affecting global operations, while Tesla shares rose slightly after a recent drop. Apple has acquired AI startup DarwinAI to bolster its artificial intelligence capabilities. These developments reflect the ongoing adjustments and strategic decisions within major corporations, which could impact their stock performance and investor sentiment.

Friday Economic Events:
Empire State Mfg Index 8:30am ET
Import and Export Prices 8:30am ET
Industrial Production 9:15am ET
Michigan Consumer Sentiment 10:00am ET
Michigan Inflation Exp. 10:00am ET
Baker Hughes Rig Count 1:00pm ET

Fed Speaker Scheduled:
No Fed Speakers Scheduled

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